You are on page 1of 17

Restaurant Design

By Restaurant Consultant Aaron Allen


The methodologies and approaches to restaurant design are as varied as the restaurant concepts
in existence today. In the United States alone, there are nearly 1,000,000 restaurants; each trying
hard to differentiate itself from the next. In this article, we hope to provide you some insight in
to the considerations and complexities of restaurant design and provide insights relevant oth
for the mom!and!pop start!up as well as to the multi!national mega chains pursing renovations
and new growth concepts.
1. Concept Development " The overall process of restaurant design, remodeling, planning,
etc is often referred to as the discipline of #restaurant concept development$. If you
are creating a new prototype, thin% of it as creating a new concept " concept
development. &estaurant concept development involves restaurant design, ut it is a
larger circle which encompasses other considerations such as mar%et and competitive
research, emerging and fading trends, financial modeling and what!if scenarios, randing
and rand evolution, supply chain issues, and potentially even rand portfolio
management 'for hospitality enterprises with multiple rands in a family that must
articulate(. )hether a restaurant renovation or in developing a completely new
prototype, restaurant concept development is and should e involved. *ne cannot loo% at
restaurant design in a vacuum or involving strictly the interior designers and architects.
2. Restaurant Design Budgets " Usually one of the first +uestions we,re as%ed y those
emar%ing on restaurant design pro-ects relates to udget. .ow much does it cost/ )ell,
udgets can swing dramatically from pro-ect to pro-ect, ut here are some rules of
thum. 0enerally, restaurants are uilt etween 123 " 1400 a s+uare foot 'some mega
pro-ects or ultra!high!end pro-ects have gone for a few thousand a s+uare foot(. The cost
for #restaurant design$ and planning is often around 105 of the construction udget
'considering strictly the design phases of the pro-ect, not larger concept development
issues involved in large scale development pro-ects(. The type of restaurant you are
uilding is certainly a factor " you,ll spend more per s+uare foot for a fine dining
restaurant than a fast!casual concept, generally spea%ing. 6lso, you should expect an
entirely different financial model in approaching the creation of a new restaurant concept
you plan to roll!out nationwide versus a single one!off concept. The former re+uires
much more planning and development. 6n average &ed 7oster is elieved to cost
around 1180 per s+uare foot and an average Staruc%s around 123 per s+uare foot.
.owever, these companies have spent millions and millions in design, randing and
purchasing planning9efficiencies, so a start!up shouldn,t expect to e anywhere near these
ranges in creating a new concept from scratch. I find it ama:ing how often someone
thin%s they will e the next Staruc%s within a 10 year period and with a 1300,000
investment. Staruc%s has spent hundreds of millions of dollars to perfect what we see
today in their latest restaurant prototype. It,s more than -ust wishful thin%ing to thin% it
can e duplicated as a growth concept within the cost of what they can today uild a
single unit they,ve spent so much perfecting. ;ega chains, li%e <arden, can afford
seven!figure per year =xecutive >ice ?resident,s and teams of hundreds wor%ing on a
new concept. It,s elieved well over 110m '#soft$ costs( was spent developing -ust the
prototype plans for their heralded Season,s 38 concept. <arden is the world,s most
successful casual dining restaurant chain, so it,s fair to thin% they weren,t -ust urning
money with their investment. @an a new prototype e created for less than 110m/ *f
course. Ay all means. It,s less li%ely though that the next illion dollar rand can e
conceived within less than the cost of opening a single unit though. 6t a minimum, you
can expect to spend a lot more in the years to come correcting the mista%es of the under!
funded prototype. There,s a saying, #;easure twice and cut once$.
3. Restaurant Design Considerations " There are literally hundreds or thousands of
elements to ta%e in to consideration in restaurant design. Today,s successful restaurant
concepts are aout more than -ust #good food, good service, good atmosphere$. The
elow list is y no means comprehensive, or even in a particular order of priority, ut it
does provide you with a sense for how complex these pro-ects can e and why it is
common to see experienced outside professional restaurant design consultants intimately
involved in ringing to life today,s successful new restaurant concepts.
1. Arand ?ersonality " Arands, li%e people, have personalities. 6 person can ecome
%nown for acting9ehaving a certain way. So too should your rand. The
personality of your rand should e defined and programmed. This
programming should happen efore the first s%etch of the restaurant design is
even considered.
8. Arand ?romises " )e would all li%e to thin% we have high integrity. Integrity
definedB saying what youre going to do and then doing what you said you would
by when you said you would. Cor a rand to have integrity, one must estalish its
distinct set of promises that differentiate it and define it. 6 strong rand is when
the promises are met with integrity.
4. Arand ?ositioning " There,s a saying that #Dou don,t merely want to e
considered the est of the est, you want to e considered the only one who does
what you do.$ The idea of #etterness$ 'we have a etter urger, etter restaurant
design, etc( is su-ective. )hen you are the #only$ though, you ecome a sole!
source provider and can dominate a mar%et.
E. Silverware " )e often don,t thin% consciously aout our silverware when eating
in a restaurant, ut it can ma%e an impression of the food efore you even ta%e
your first ite. 7ight, flimsy and cheap silverware will give an impression of
light, flimsy and cheap food. That,s why you will notice that many high!end
stea%houses use large and heavy %nives. )hile part of the taleware these things
all comine to reflect on the restaurant and are all considerations in the overall
restaurant design and concept development.
3. Uniforms " &estaurant uniforms have come a long way since the day of the fine
dining #mon%ey suit$. =ven celerity fashion designers are getting in on the
action and designing uniforms for restaurants; and why not/ Some chains have
tens of thousands of employees and each is an amassador of the rand. The
uniform is an extension of the rand and therefore should e viewed through the
same lens as your overall restaurant design process.
F. >entilation " ;any regions around the world are outlawing smo%ing in pulic
places. I,m still ama:ed y how many places don,t. I,m not a smo%er, ut I would
imagine not even smo%ers want to wal% out of a restaurant smelling li%e an
ashtray. >entilation is aout more than the smells we don,t want to smell 'more
elow on #aroma design$(. Cor instance, imagine a restaurant conceived in
Clorida eing uilt in ;assachusetts " you have to ta%e an entirely different
approach to seasonal temperature fluctuations. 7arge cavernous spaces can e
drafty. 6s you can see, ventilation is an important consideration in restaurant
design and -ust another example as to why this is aout so much more than -ust
good aesthetics and tasteful design selections.
G. Aathrooms H Arand Immersion " )e,ve all heard the adage that customers
assume that y extension an un%empt athroom must mean a disastrously
un%empt %itchen. #If they allow their athrooms " which are in plain sight of
customers " to get li%e this, what must the %itchen loo% li%e since it,s out view/$
)e elieve that more than -ust %eeping a athroom clean, the athroom presents
an opportunity to further differentiate a restaurant and ma%e an impression. Dou
should e ale to put a lindfold on a customer, spin them 10 times, drive them
across town, put them in your athroom and ta%e off the lindfold and they should
e ale to tell you exactly where they are. That,s great athroom design.
<istinctive and communicative of the rand. Staruc%s is a good example of this
concept. =ven without seeing the logo, you %now you are in a Staruc%s
athroom. The concept can e ta%en much further though. So, is this design or is
this mar%eting/ The two are inextricaly intertwined in our opinion.
2. &estaurant <esign for @elerities " These days there seem to e lots of celerities
getting in to the restaurant usiness and also a surprising numer of restaurateurs
and chefs ecoming celerities for already eing in the restaurant usiness. Sure,
there has long een the allure of the usiness " snapping your finger and getting a
tale, the misconceptions of a restaurant,s profitaility, and the general sex appeal
of eing a restaurateur. .owever, an extra layer has een added to the restaurant
usiness for celerities " rand extension. &estaurants, li%e people, have a #rand
personality$ and, when properly executed, a restaurant can extend a celerities
empire with a wal%!in advertisement. @elerities such as ;agic Iohnson, =va
7ongoria, Iustin Timerla%e, 0loria =stephan and others have not only made
successful usinesses with their restaurants, they have extended their rand in to
new arenas. Aoth restaurateurs and celerities could learn a thing or two from
one another, and it,s certain to me those exchanged tips would have a lot to do
with principles of restaurant design and randing.
J. <oor Knos @an Spea% " )e,ve all heard the expression #dum as a door%no$.
)hile door%nos don,t have an inherent intelligence, they can actually +uite
smartly communicate on your ehalf. )e usually don,t pay attention to a
door%no; unless, that is, the door%no is out of place. <oor%nos actually spea%
on ehalf of your restaurant efore the hostess or greeter staff. The texture, the
weight, the materials, the style, the oviousness or understated nature of the
door%no all communicate the rand whether y accident or design.
10. &estaurant ;enu <esign " The most important piece of mar%eting collateral for a
restaurant is its menu. 6 menu can,t e viewed as simply an inventory listing of
items for sale with a corresponding price. It must e viewed as the single most
important tool in showcasing your restaurants offerings, culinary philosophy and
rand attriutes. The weight, si:e, paper, presentation, fonts and typographies,
photos, use of language and more are all important considerations in your
restaurant menu. The menu should e viewed as an extension of the restaurant
design " fully integrated in the rand personality and positioning.
11. Storage Leeds " <o you plan on receiving lots of small deliveries in the wee% and
having a high turnover of inventory, or do you plan to purchase in ul% for
savings and store on!site/ )ill your distriutor let you uy in ul% and store in
their warehouse without an additional fee/ <o you have a lot of high!value
inventory that needs special security measures 'you don,t store &emy ;artin
7ouis >III the same as you store ar nap%ins(. This is an example of operational
and functional design considerations, which aren,t part of the typical interior
design curriculum. )here design meets function is often a gap for restaurant
designers without deep restaurant industry experience.
18. &efrigeration Leeds " )ill you have a lot of perishales on your menu that
re+uire refrigeration, or are you ringing in oxes of fro:en wings and Crench
fries/ 6 restaurant concept with 80 eers on tap will have dramatically different
refrigeration needs than an ice cream store.
14. 7ighting <esign " Dou can easily con-ure in your mind the image of flic%ering
florescent lights over a grid of office cuicles and %now it,s not a place you want
to e. )e may watch a ug lamp in ama:ement that ugs continuously fly in to
the fatal electric shoc%, ut we are doing the same thing in our own world. Cor
reasons the layman can,t easily explain, lighting can captivate their mood and
their wallets. @andles are romantic. &ed lights ma%e us stop 'and hungry,
incidentally(. 7ow lighting can ma%e us relaxed. Staff need tas% lighting.
7ighting is a highly speciali:ed area of design. 6 restaurant without a
thoughtfully conceived lighting plan is li%e <isney without firewor%s or salt
without pepper.
1E. 6coustical <esign " 6 restaurant engages all of the senses. @ertainly sight, smell,
taste and touch considered in restaurant design pro-ects, ut what aout sound/
Des, the restaurant industry and restaurant concept development has ecome so
competitive that one must consider acoustical design. Is your restaurant est
suited for peace and +uiet or would you e etter suited to have a ar that feels
usy and ustling/ *ne restaurant in Spain was dreadfully slow and aout to go
out of usiness. The owner pumped the recorded sound of a usy restaurant out
on to the sidewal% streets and low!and!ehold the restaurant was pac%ed.
7i%ewise, where we do or don,t hear music and amient noise can ma%e an
impact. Cor example, many night clus design areas that ma%e it easy to tal% to
someone you met on a dance floor where you couldn,t hear yourself thin%.
6nother example it the athroom " here is an area where you don,t want to hear
other people at all; random people noises in a star%ly +uiet athroom can e
uncomfortale for all involved.
13. 6roma <esign " Sure, the %itchen emits an aroma which should e pleasant and
appealing. This doesn,t happen y accident though. )ithout proper
considerations, you may fill your restaurant with wafts of smo%e or unpleasant
odors. Dou can also have an aroma pollution where there are too many scents
floating aout. Aeyond the aroma of the cuisine though, there are other
considerations. *ne restaurant we wor%ed with introduced aromatherapy in a way
that stimulated the senses and appetite efore customers were even in the dining
room. There,s nothing worse than smelling dirty mop water in the loy or an
unpleasant athroom odor. )ithout smell we would not have taste 'for more visit
this restaurant consultant log, so clearly this is an important consideration in
your restaurant design and shouldn,t e left to chance.
1F. Restaurant Design Process " The steps in the restaurant design process can e
expanded or collapsed to suit your tastes for level of detail. There are hundreds of
inter!dependent decisions and steps. 0enerally, the timing of these pro-ects can
range from several very intense wee%s to potentially a year or more for large!scale
development pro-ects moving at a steady pace. 6s restaurant design consultants,
our complete process is proprietary. )e will e augmenting this article with a
follow up piece on a summary of the process we underta%e, ut one thing we feel
cannot e over!emphasi:ed is the importance of starting with a very solid
restaurant rand constitution9platform. It,s etter to spend more time in planning
and soft costs of development with an experienced pro than to rush in to the
design and then try to undo mista%es later. It,s much easier to ma%e a change on a
digital file than it is to change a ma-or mista%e on a completed uilding.
1G. Licensed Restaurant Designers & Architects " =ach country, state, county and
even city can have dramatically different codes and laws governing design and
architecture in that -urisdiction. 6s a result, the permitting process for a new
pro-ect can ta%e from a few wee%s to several years. Lavigating through this
minefield of ureaucracy can e challenging to say the least. Ultimately, all
restaurant design plans must e sumitted to these oards via a licensed architect.
They must e #signed and sealed$, meaning a senior licensed architect has
reviewed the design, the architecture and the mechanical, electrical and pluming
plans 'often referred to as the ;=?(. MNOTE: Aaron Allen does not
represent himself as a licensed interior designer or licensed architectural firm.
We are restaurant design consultants speciali!ing in o"erall restaurant design
strategy# branding# concept de"elopment and comprehensi"e integration of
pro$ects as restaurant consultantsN. In the realm of design, a licensed designer
may sumit plans that do not call for significant modifications to an existing
uilding, such as structural changes. In the hierarchy of licensing, a licensed
architect can approve anything a licensed designer can, ut a licensed designer
cannot approval all that a licensed architect can. Iust as with conceptual
development, design and architectural planning, the location of your selected
consultants is less important than speciali:ation. This process can and often is
completed at a distance 'i.e. architects in Lew Dor% creating uildings in <uai,
or a speciali:ed restaurant designer in *rlando doing a pro-ect in ;exico, or
wherever(. That said, it is often advised for complex pro-ects to also retain a local
architect that is familiar with the codes in some -urisdictions and has the
relationships to physically #wal% the plans through permitting$. Des, although it
should e the case, the indigenous consultants can get some special treatment.
Camiliari:ation with local codes and officials, however, shouldn,t e more
important to you than the ig picture in your selections. )e recommend hiring
locals to augment the team on igger pro-ects, not to run them necessarily. )e
have several licensed architects we have wor%ed with and can recommend. )e
also serve as advisors and pro-ect!lead for restaurant concept development in
articulation with your own selected licensed designer or one that we can refer to
you.
12. Marketing Dept. and Restaurant Design " There are literally do:ens of
speciali:ed disciplines that have to come together to complete a successful new
restaurant prototype. )ho should they all report to/ )ho is the +uarterac%/
Des, the owner of the team is still the owner of the team, ut that,s not the person
running every call of the game. )e elieve the entire team should report in to the
most senior mar%eting strategist, who in turn reports in to the executive team.
There are literally thousands of decisions that must e made through the course of
a restaurant design pro-ect. 6ll of these decisions should e viewed through the
lens of the rand and that is the domain of you most senior mar%eting advisor. I
am not a licensed designer or architect, yet I have successfully lead restaurant
design pro-ects on six continents representing do:ens of new prototypes. It,s een
a very successful approach, and one we pioneered.
The aove list of considerations is y no means a complete set, rather it is a cherry!pic%ed list to
provide you with an insight as to why great restaurant design can e so involved and expensive
to do right. 6s you can see, restaurant design is not -ust aout pic%ing colors and farics. It
involves a lot of technical %nowledge of how restaurants wor% and restaurant operational
considerations. It,s why we recommend you find a partner with a deep restaurant industry
%nowledge; eing a +ualified interior designer or architect is not enough these days to create a
truly integrated restaurant !rand.
The ottom line " great restaurant design is complicated. Shopping for #cheap$ restaurant
design consultants is li%e shopping for a cheap neurosurgeon. Dep, they,re out there. The
+uestion you have to as% yourself is " do I want the cheapest neurosurgeon or do I want the est.
The est and the cheapest often ta%e very different approaches.
Cor more information on how we create new restaurant concepts and new prototypes for growth!
minded restaurant chains, contact Kristin Thistle at E0G!FF2!3438 or %thistle O aaronallen.com.
Restaurant Sample Business Plan Outline
For information on an updated version of this page, click here
To download a sample business plan (free) click here...
Table of Contents
Cover Letter
Executive Summary
Company Description
Industry nalysis
Products ! Related Services
T"e Tar#et $ar%et
T"e Competition
$ar%etin# Plan ! Sales Strate#y
Operations
$ana#ement ! Or#ani&ation
Lon#'Term Development ! Exit Plan
(inancial Data ! Pro)ections
ppendices

Company Description
Kundo, Inc., a Massachusetts based company, will operate Abonda, a single unit, medium-
size restaurant serving healthy, contemporary style food. The restaurant will be located at
!" #eacon $treet in %ambridge, Massachusetts.
$ission Statement
The company&s goal is that of a multi-faceted success. 'ur first responsibility is to the
financial well-being of the restaurant. (e will meet this goal while trying to consider) *+ the
effect of our products on the health and well being of our customers ,and our staff+, -+ the
impact that our business practices and choices will have on the environment, and .+ the
high /uality of attitude, fairness, understanding, and generosity between management,
staff, customers, and vendors. Awareness of all these factors and the responsible actions
that result will give our efforts a sense of purpose and meaning beyond our basic financial
goals.
Development ! Status
The company was incorporated in $eptember of *00" and elected sub-chapter $.
The founders are 1ac2 Morton and (ilma Mason. 1ac2 is the 3resident and (ilma the 4ice
3resident. There is a total of *5,555 shares of common stoc2 issued. (ilma and 1ac2 each
own .,555 and the remainder are retained by the company for future distribution. In
addition they have loaned the company 6-",555 of their own money for research and start-
up costs.
A suitable site for the first restaurant was found last month and lease negotiations are in the
final stages. The location will be on #eacon $treet, 7ust outside 8arvard $/uare and close to
a dense population of the target mar2et. (hen the lease is signed there will be three
months of free rent for construction and in that time the balance of the start-up funds must
be raised. (ith that phase completed, Abonda 9estaurant can then open and the operations
phase of the pro7ect can begin.
(uture Plans
If the business is meeting its pro7ections by month nine, we will start scouting for a second
location and develop plans for the ne:t unit. 'ur five year goal is to have . restaurants in
the greater ;oston area with a combined annual profit of between 6"55,555 and
6*,555,555.
Table of %ontents
Industry nalysis
Although the restaurant industry is very competitive, the lifestyle changes created by
modern living continue to fuel its steady growth. More and more people have less time,
resources, and ability to coo2 for themselves. Trends are very important and Abonda is well
positioned for the current interest in lighter, healthier foods at moderate to low prices.
T"e Restaurant Industry Today
The food service business is the third largest industry in the country. It accounts for over
6-!5 billion annually in sales. The independent restaurant accounts for *"< of that total.
The average American spends *"< of his=her income on meals away from home. This
number has been increasing for the past seven years. In the past five years the restaurant
industry has out-performed the national >?3 by !5<. The reasons given by the @ol2ney
9eport ,?ovember *00!+ are *+ lifestyle changes, -+ economic climate, and .+ increase of
product variety.
There are 55 new restaurants opening every month and over -55 more needed to 2eep
pace with increasing demand.
(uture Trends ! Strate#ic Opportunities
The predicated growth trend is very positive both in short and long-term pro7ections.
@ol2ney states again that as modern living creates more demands, people will be compelled
to eat more meals away from home. The #M9 Industrial 9eport ,April *00"+ estimates this
as high as .5< over the ne:t five years.
In *0AA The ?ational 9estaurant Association released the @oodservice Industry -555 report
that forcasted how the industry might loo2 in the year -555. $ome highlights from the
panel&s findingsB
C%onsumers will spend a greater proportion of their food dollar away from home.
Independent operators and entrepreneurs will be the main source of new restaurant
concepts.
?utritional concerns will be critical at all types of foodservice operations, and food
flavors will be important.
Dnvironmental concerns will receive increased attention.C
Table of %ontents
Products ! Related Services
Abonda 9estaurant will be offering a menu of food and beverages with a distinctive image.
There will be three ways to purchase these products) table service at the restaurant, ta2e-
out from the restaurant, and delivery to home or office.
T"e $enu
The Abonda menu ,see appendices+ is moderate sized, and moderate-low priced offering a
collection of ethnic and American items with a common theme -- healthy ,low-fat, low
cholesterol, natural ingredients+, flavorful, and familiar. 'ur goal is to create the image of
light satisfying and still nutritious food.
There has been an increased awareness of nutritional and health concerns in recent years
and a growing mar2et of people who now eat this style of coo2ing regularly.
Production
@ood production and assembly will ta2e place in the 2itchen of the restaurant. @resh
vegetables, meat and dairy products will be used to crate most of the dishes from scratch.
The chef will e:ercise strict standards of sanitation, /uality production, and presentation or
pac2aging over the 2itchen and service staff.
Service
There will be three ways a customer can purchase food. They may sit down at one of the "!
seats in the dining room and get full service from a waitperson. A separate ta2e-out counter
will service those who wish to pic2 up their food. Most ta2e-out food will be prepared to
order with orders coming from either the telephone or fa:. #elivery ,an indirect form of
ta2e-out+ will be available at certain times and to a limited area.
(uture Opportunities
There is a mar2et segment that prefers to eat this type of coo2ing at home although they do
not have the time to coo2. There are already caterers and even mail order companies that
provide individuals and families with up to a month&s supply of pre-prepared meals.
This opportunity will be researched and developed on a trial basis. If successful, it could
become a ma7or new source of income without creating the need for additional staff or
production space.
Table of %ontents
T"e Tar#et $ar%et
The mar2et for Abonda&s products covers a large area of diverse and densely populated
groups. Although it will be located in a downtown urban setting, it is an area where people
travel to eat out and one that is also fre/uented by tourists. It is also an area 2nown for and
catering to the demographic group we are targeting.
$ar%et Location ! Customers
The 8arvard $/uare area is one of the most desirable retail locations in ?ew Dngland. The
Mass. %hamber of %ommerce rates it as the third best retail mar2et in the state. There are
more than !55 businesses in a *=! s/uare mile area with average sales of 6..5 per s/uare
foot.
The customer base will come from . ma7or segments)
Local population -- the city of %ambridge with a year-round population of *!",555
is centrally located in the ;oston area and is within *" minutes drive of A ma7or
suburbs.
Colle#es and *niversities -- 8arvard alone has different schools within wal2ing
distance of #eacon $treet and a seasonal population of --,555. In addition " more
colleges near the s/uare have large student bodies.
Tourism -- between hotels, motels, bed E brea2fast rooms and inns, there are over
A,"55 rooms available. Fast year they were at 0-< occupancy.
Local businesses -- The %ambridge %hamber of %ommerce lists over 055
businesses with an average of *- employees in the 8arvard s/uare area.
The food concept and product image of Abonda will attract . different customer profiles)
T"e student -- more and more young people have developed healthy eating habits.
$ome also go through a Chealth food phaseC while in college.
T"e "ealt" conscious person of any a#e or sex -- this includes anyone on a
restricted or prescribed diet or those who have committed to a healthy diet.
Curious and open'minded -- Cif you try it, you will li2e it.C Through mar2eting,
publicity, and word-of-mouth, people will see2 out a new e:perience and learn that
nutritious food can be tasty, fun, convenient, and ine:pensive.
$ar%et Trends ! T"e (uture
The population and demographics of 8arvard s/uare have remained steady for the last *!
years. Tourism has increased -!< over the last . years and is predicted to 2eep growing.
Focal businesses are increasing at a rate of *A< yearly.
The idea of a health consciousness through nutritional awareness and dietary change has
been slowly building for the last G years. The e:tensive government studies and new @ood
>uide 3yramid have given everyone a new definition of a balanced, healthy diet. This is not
a fad but a true dietary trend
bac2ed by the scientific and medical community, the media, the government, and endorsed
by the big food manufacturers. As the @oodservice -555 report stated, this trend will be
even more important by the turn of the century.
As people want to stay home more and coo2 less our strategy of delivering prepared meals
on a wee2ly or monthly arrangement may be a widespread accepted new way of eating.
Table of %ontents

T"e Competition
There are over two dozen restaurants in the 8arvard $/uare area that sell food at similar
prices. Although this presents an obvious challenge in terms of mar2et share, it also
indicates the presence of a large, strong potential. The newest competitors have made their
successful entry based on an innovative concept or novelty. Abonda will offer an innovative
product in a familiar style at a competitive price. 'ur aggressive plans of ta2e-out and
delivery will also give us an advantage to create a good mar2et share before the competition
can ad7ust or similar concepts appear.
Competitor+s Profile
%ompeting with Abonda for the target mar2et are these categories of food providersB
Independent table service restaurants of similar menu and price structure.
%hain C C C C C
%ommercial foodservice companies serving students directly.
Independent operators include >rendel&s #en, Ia2o, ;ombay %lub, Iruna, and The ;order
%afe. Most are ethnic based and will carry at least two similar menu items. >rendel&s and
Iruna are long-standing businesses while the others are fairly new. They all are doing very
well.
The ma7or chain restaurants are 8ouse of ;lues, %hili&s and ;ertucci&s. All are relatively new
but well established and profitable. They have big resources of mar2eting and=or a specialty
product or attraction ,8ouse of ;lues is also a live music club+. 'gden @oods and %ysco both
service -!,555 8arvard students but their product is not appealing enough to prevent
students from eating out " to G meals a wee2. In addition there are two local catering
companies that deliver prepared meals daily to offices.
Competitive Strate#y
There are three ma7or ways in which we will create an advantage over our competitors)
product identity, /uality, and novelty
high employee motivation and good sales attitude
innovative and aggressive service options.
Abonda will be the only restaurant among all the competition which focuses the entire menu
on healthy, low-fat coo2ing. Dach of the competitors offers at least one ChealthyC selection
on their menu. >rendel&s #en even has an entire section called C'n the Fighter $ideC but in
all cases they are always seen as alternatives to the main style being offered. The target
mar2et will perceive Abonda as the destination location for healthy, low-fat coo2ing.
'nce they have tried the restaurant, their e:perience will be reinforced by friendly, efficient,
2nowledgeable service. 9eturn and repeat business will be facilitated by accessable ta2e-out
and delivery options. At the time of this writing all of the competitors offered ta2e-out but
only two ,;ertucci&&s E %hili&s+.
Table of %ontents
$ar%etin# Plan ! Sales Strate#y
$ar%et Penetration
Dntry into the mar2et should not be a problem. The store has high visibility with heavy foot
traffic all day long. The local residents and students always support new restaurants and the
tourists do not have fi:ed preferences. In addition, 6*5,555 has been budgeted for a pre-
opening advertising and public relations campaign.
$ar%etin# Strate#y
@ocusing on the uni/ue aspect of the product theme ,healthy, tasty foods+ a mi: of
mar2eting vehicles will be created to convey our presence, our image, and our message.
Print media -- local newspapers, magazines and student publications
Broadcast media -- local programming and special interest shows
,otel #uides, concierge relations, %hamber of %ommerce brochures
Direct mail -- subscriber lists, offices for delivery
$isc. -- yellow pages, charity events
A public relations firm has been retained to create special events and solicit print and
broadcast coverage, especially at the start-up.
The mar2eting effort will be split into . phases)
*+ Openin# -- An advanced notice ,press pac2et+ sent out by the 39 firm to all media and
printed announcement ads in 2ey places. ;udget - 6*5,555
-+ On#oin# -- A fle:ible campaign ,using the above media+, assessed regularly for
effectiveness. ;udget - 6*5,555
.+ Point of sale -- A well-trained staff can increase the average chec2 as well as enhancing
the customer&s overall e:perience. (ord-of-mouth referral is very important in building a
customer base.
(uture plans and Strate#ic Opportunities
%atering to offices ,even outside of our local area+ may become a large part of gross sales.
At that point a sales agent would be hired to directly mar2et our products for daily delivery
or catered functions.
Table of %ontents
Operations
(acilities ! Offices
The restaurant at !" #eacon $treet is a -!55 $/uare foot space. It was formerly a
restaurant and needs on minor structural modifications. The licenses and codes& issues are
all in order. ?ew e/uipment and dining room furnishings will be purchased and installed by
the general contractor. 'ffices of the corporation are presently at 1ac2 Morton&s home but
will be moved to the restaurant after opening.
,ours of Operation
The restaurant will be open for lunch and dinner G days a wee2. $ervice will begin at **B55
AM and end at **B55 3M. The restaurant will be closed %hristmas, Than2sgiving, and the
@ourth of 1uly.
Employee Trainin# ! Education
Dmployees will be trained not only in their specific operational duties but in the philosophy
and applications of our concept. They will receive e:tensive information from the chef and
be 2ept informed of the latest information on healthy eating.
Systems ! Controls
A big emphasis is being placed on e:tensive research into the /uality and integrity of our
products. They will constantly be tested for our own high standards of freshness and purity.
@ood costs and inventory control will be handled by our computer system and chec2ed daily
by management.
(ood Production
Most food will be prepared on the premises. The 2itchen will be designed for high standards
of sanitary efficiency and cleaned daily. @ood will be made mostly to order and stored in
large coolers in the basement.
Delivery ! Caterin#
@ood for delivery may be similar to ta2e-out ,prepared to order+ or it may be prepared
earlier and stoc2ed. %atering will be treated as deliveries.
Table of %ontents

$ana#ement ! Or#ani&ation
-ey Employees ! Principals
1ac2 Morton, 3resident. 1ac2 Morton is also the owner and manager of >rains E ;eans, a
local natural food wholesaler and retail store. $ince *0GG his company has created a high-
profile mainstream image for natural foods. In *00- >rains E ;eans opened a small cafe
within the retail store that became so popular and profitable, he decided to e:pand the
concept into a full service restaurant.
1ac2 brings with him a trac2 record of success in the natural foods industry. 8is
management style is innovative and in 2eeping with the corporate style outlined in the
mission statement.
Compensation ! Incentives
Abonda will offer competitive wages and salaries to all employees with benefit pac2ages
available to 2ey personnel only.
Board of Directors
An impressive board of directors has been assembled that represents some top professional
from the area. They will be a great asset to the development of the company.
Consultants ! Professional Support Resources
At the present, no outside consults have been retained, e:cepting the design department at
;est D/uipment.
$ana#ement to be dded
(e are presently searching for a general manager and e:ecutive chef. These 2ey employees
will be well chosen and given incentives for performance and growth.
$ana#ement Structure ! Style
1ac2 Morton will be the 3resident and %hief 'perating 'fficer. The general manager and chef
will report to him. The assistant manager and sous-chef will report to their respective
managers, and all other employees will be subordinate to them.
O.ners"ip
1ac2 Morton and the stoc2holders will retain ownership with the possibility of offering stoc2
to 2ey employees if deemed appropriate.
Table of %ontents

Lon#'Term Development ! Exit Plan
/oals
Abonda is an innovative concept that targets a new, growing mar2et. (e assume that the
mar2et will respond, and grow /uic2ly in the ne:t " years. 'ur goals are to create a
reputation of /uality, consistancy and security ,safety of food+ that will ma2e us the leader
of a new style of dining.
Strate#ies
'ur mar2eting efforts will be concentrated on ta2e-out and delivery, the areas of most
promising growth. As the mar2et changes, new products may be added to maintain sales.
$ilestones
After the restaurant opens, we will 2eep a close eye on sales and profit. If we are on target
at the end of year *, we will loo2 to e:pand to a second unit.
Ris% Evaluation
(ith any new venture, there is ris2 involved. The success of our pro7ect hinges on the
strength and acceptance of a fairly new mar2et. After year *, we e:pect some copycat
competition in the form of other independent units. %hain competition will be much later.
Exit Plan
Ideally, Abonda will e:pand to five units in the ne:t *5 years. At that time, we will entertain
the possibility of a buy-out by a larger restaurant concern or actively see2 to sell to a new
owner.

You might also like